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2 Ministry of Finance Information on the implementation of the Gambling Law in 2017 Warsaw, 2018

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Page 1: Information on the implementation of the Gambling Law in 2017€¦ · gambling games on the Internet on websites entered in the Register. 2017 was the eighth year of effectiveness

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Ministry of Finance

Information

on the implementation

of the Gambling Law

in 2017

Warsaw, 2018

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TABLE OF CONTENTS

1. INTRODUCTION ..................................................................................................................................... 4 2. LEGAL STATUS ...................................................................................................................................... 5 3. DESCRIPTION OF THE GAMBLING MARKET .................................................................................. 9

3.1. Gambling games for the arrangement of which the minister competent for public finance shall

grant a licence or a permit ......................................................................................................................... 9 3.2. Permits issued by directors of revenue administration regional offices and notifications submitted

to heads of customs and tax control offices ............................................................................................ 10 3.3. Key indicators characterising the gambling market ......................................................................... 11 3.3.1. Number of gaming devices operated in casinos and games arcades ............................................. 13 3.3.2. Economic and financial results of entities pursuing activity in the scope of gambling games ..... 13 3.3.3. Revenue on gambling games recognised by entities pursuing activity in this scope and its

structure by game types in the years 2016 - 2017 ................................................................................... 14 4. RECEIPTS FOR THE STATE BUDGET .............................................................................................. 15

4.1. Gambling tax revenue ...................................................................................................................... 15 4.1.1. Gambling tax for the years 2016-2017 .......................................................................................... 15 4.1.2. Structure of gambling tax for the years 2016 – 2017 .................................................................... 16 4.2. Tax arrears ........................................................................................................................................ 17 4.3. Receipts from fees in 2017 ............................................................................................................... 17 4.4. Surcharges ........................................................................................................................................ 18

5. SUPERVISION AND CONTROL OF ACTIVITY DETERMINED UNDER THE GAMBLING LAW

..................................................................................................................................................................... 20 5.1 Bodies authorised to exercise control and forms of control .............................................................. 20 5.2. Conducted inspections in the area of the legal gambling market and their outcome .................... 21 5.2.1. Inspections of arrangement of gambling games in 2017 ............................................................... 21 5.2.2. Number of performed inspections of arranging games and irregularities found in entities holding

a license/ permit for arranging gambling games and in entities notifying such games ........................... 21 5.2.3. Tax inspections performed by the National Revenue Administration in the area of gambling

games ....................................................................................................................................................... 23 5.3. Inspections in the area of the illegal gambling market, i.e. in relation to entities arranging and

conducting gambling games without a licence, a permit or a notification .............................................. 24 5.3.1. Activities of the National Revenue Administration in the scope of combating arranging games on

gaming machines without a permit ......................................................................................................... 27 5.4. Activities of bodies of the National Revenue Administration in the scope of violation of the

provisions of the Gambling Law on the Internet ..................................................................................... 28 5.4.1. Arranging illegal gambling games on the Internet ........................................................................ 28 5.4.2 Advertising and promoting gambling games on the Internet ......................................................... 29 5.4.3. Activities in the scope of cooperation of the National Revenue Administration bodies with the

aim of counteracting violation of provisions in the area gambling games on the Internet ...................... 30 5.5. Tax crime and tax offence against the organisation of gambling games .......................................... 31 5.6. Application of administrative sanctions for the infringement of the provisions of the Gambling

Law .......................................................................................................................................................... 33

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1. INTRODUCTION

This document presents the fulfilment the order by the Council of Ministers imposing

the obligation on the minister competent for public finance to inform the Council, in annual

cycles, about the status of the implementation of the Act of 19 November 2009 - Gambling

Law (Journal of Laws of 2018, item 165, as amended).

The purpose of this information is to present the facts and figures on the situation

of the gambling market in Poland and the measures of the state, both in terms of legislation

and control, streamlining this market in the eighth year of effectiveness of the aforementioned

Act. Moreover, the document contains information on the implementation

of the aforementioned Act in the context of income due to gambling tax and execution

of budgetary assumptions, the analysis of the behaviour of the gambling industry against

the backdrop of the economic, legislative and social developments.

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2. LEGAL STATUS

In 2017, the principles of the functioning of the gambling market in Poland were regulated

by the Act of 19 November 2009 - Gambling Law (Journal of Laws of 2018, item 165,

as amended), hereinafter referred to as the “Gambling Law” and the implementing regulations

thereto.

The Gambling Law was amended by the Act of 15 December 2016 amending the Gambling

Law and certain other acts (Journal of Laws of 2017, item 88), effective from 1 April 2017.

The amending Act introduced the following significant changes:

state monopoly in organising games on gaming machines outside the casino in games

arcades;

possibility to organise games on the Internet by a company exercising the state monopoly

(with the exception of betting and promotion lotteries);

obligation to prepare and apply regulations of responsible gaming by entities arranging

gambling games on the Internet;

establishment of the Register of domains intended for offering gambling games

incompatible with the Gambling Law;

possibility to organise poker tournaments also outside the casino;

possibility to advertise betting for which a permit was granted (pursuant to the terms

defined in the Gambling Law);

raising penalties for arranging games on gaming machines without the required licence

and extending the catalogue of entities subject to fine for violating the provisions

of the Gambling Law;

ban on holding gaming machines (save for the exceptions indicated in the Gambling

Law);

liquidation of exams and professional certificates related to supervising and conducting

gambling games;

obligations for Internet service providers and payment service providers (effective as of

1 July 2017):

- blocking access to websites using names of Internet domains entered in the Register

of domains intended for offering gambling games incompatible with the Gambling Law,

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- ban on collaboration by payment service providers with entities which organise illegal

gambling games on the Internet on websites entered in the Register.

2017 was the eighth year of effectiveness of the Gambling Law. In the same year, the

following legal regulations shaping this area were promulgated:

1. Regulation of the Minister of Development and Finance of 22 February 2017 on the

appointment of the head of the tax office competent to issue forms of prize certificates (Journal

of Laws item 362);

2. Regulation of the Minister of Development and Finance of 22 February 2017 concerning

the competence of tax offices and revenue administration regional offices in the scope

of gambling tax (Journal of Laws item 370);

3. Regulation of the Minister of Development and Finance of 23 February 2017 amending

the Regulation concerning prize certificates and as well as records of certificates and records

of prizes paid (issued) (Journal of Laws item 382);

4. Regulation of the Minister of Development and Finance of 24 February 2017 amending

the Regulation concerning the detailed conditions of registering and maintenance of gaming

machines and devices (Journal of Laws item 389);

5. Regulation of the Minister of Development and Finance of 24 February 2017 concerning

areas of local jurisdiction of heads of customs and tax control offices competent for accepting

raffle lottery and raffle bingo notifications (Journal of Laws item 398);

6. Regulation of the Minister of Development and Finance of 27 February 2017 on the

appointment of heads of customs and tax control offices competent for the registration

and maintenance of gaming machines and gaming devices and determining their areas of local

jurisdiction (Journal of Laws item 421);

7. Regulation of the Minister of Development and Finance of 24 February 2017 concerning

customs and tax control performed in the scope of arranging and operating gambling games

(Journal of Laws item 438);

8. Regulation of the Minister of Development and Finance of 28 February 2017 concerning

areas of local jurisdiction of directors of revenue administration regional offices concerning

granting permits to arrange a raffle lottery, an audiotele lottery, a raffle bingo and a promotional

lottery (Journal of Laws item 439);

9. Regulation of the Minister of Development and Finance of 29 March 2017 concerning

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records of slot machines (Journal of Laws item 698);

10. Regulation of the Minister of Development and Finance of 30 March 2017 concerning

the principles of deploying games arcades on the territory of a municipality (Journal of Laws

item 701);

11. Regulation of the Minister of Development and Finance of 30 March 2017 on the

appointment of heads of Customs and Tax Control Offices competent for the matters

of registration and maintenance of gaming machines, lottery drawing machines and gaming

devices and determining their areas of local jurisdiction (Journal of Laws item 702);

12. Regulation of the Minister of Development and Finance of 31 March 2017 amending

the Regulation concerning the documentation to be maintained by gambling operators (Journal

of Laws item 705);

13. Regulation of the Minister of Development and Finance of 10 April 2017 concerning

the template of the application for issuing the decision referred to in Article 2(6) of the

Gambling Law (Journal of Laws item 792);

14. Regulation of the Minister of Development and Finance of 25 April 2017 concerning

the templates of gambling tax return forms (Journal of Laws item 853);

15. Regulation of the Minister of Development and Finance of 25 April 2017 amending

the Regulation concerning the template of the information on surcharges in number games,

cash lotteries and telebingo (Journal of Laws item 866);

16. Regulation of the Minister of Development and Finance of 18 May 2017 concerning

the method and scope of archiving the data related to gambling games arranged via the Internet

(Journal of Laws item 1018);

17. Regulation of the Minister of Development and Finance of 1 June 2017 concerning

the ICT system registering and archiving the data related to the process of games on gaming

machines in games arcades (Journal of Laws item 1096);

18. Regulation of the Minister of Development and Finance of 8 June 2017 concerning

lottery drawing machines, gaming devices and gaming machines, securing information related

to arranged lottery as well as gaining, calculating and paying prizes (Journal of Laws item

1171);

19. Regulation of the Minister of Development and Finance of 28 June 2017 concerning

the submission of information on the functioning of entities arranging and pursuing activity

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in the scope of gambling games (Journal of Laws item 1304);

20. Regulation of the Minister of Development and Finance of 20 July 2017 concerning

the appointment of the National Revenue Administration body to which the registering system

is made available by an entity exercising the state monopoly in the scope of games on gaming

machines arranged in games arcades (Journal of Laws item 1441);

21. Notice of the Minister of Development and Finance of 29 August 2017 promulgating

the uniform text of the Regulation of the Minister of Finance concerning prize certificates

and as well as records of certificates and records of prizes paid (issued) (Journal of Laws item

1723);

22. Notice of the Minister of Development and Finance of 8 September 2017 promulgating

the uniform text of the Regulation of the Minister of Development and Finance concerning

the template of the information on surcharges in number games, cash lotteries and telebingo

(Journal of Laws item 1770);

23. Regulation of the Minister of Sports and Tourism of 25 September 2017 concerning

the transfer of funds from the Physical Development Fund (Journal of Laws item 1801);

24. Regulation of the Minister of Development and Finance of 27 September 2017

concerning the audiovisual game control system (Journal of Laws item 1833);

25. Act of 15 September 2017 on the National Institute of Freedom – Centre for

the Development of Civil Society (Journal of Laws item 1909, as amended);

26. Regulation of the Minister of Health of 31 October 2017 concerning raising co-financing

for the implementation of tasks from the resources of the Fund for Resolving Gambling

Problems (Journal of Laws item 2029).

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3. DESCRIPTION OF THE GAMBLING MARKET

3.1. Gambling games for the arrangement of which the minister competent for public

finance shall grant a licence or a permit

The table below provides a quantitative illustration of the gambling market as at the end of

2016 and 2017 in the segment of games arranged in casinos, games arcades and bet making

points.

Games

Number of existing

licences/ permits

Number of existing game

centres/ points with

licences/ permits

Number of licences/

permits issued

as at

31.12.2016

as at

31.12.2017

as at

31.12.2016

as at

31.12.2017 2016 2017

Casinos 46 49 46 49 10 16

Cash bingo halls 0 0 0 0 0 0

Betting and bet making points 26 28 2355 2510 5 6

Betting via the Internet 7 7 X X 2 0

Casinos

In 2017, 38 applications for a casino operating licence were filed, which was associated with

the publication of information on the expiry dates of 18 licences granted in the years 2011 –

2012 and available locations in the Małopolskie, Dolnośląskie and Śląskie Provinces. From

1 January to 31 December 2017, the minister competent for public finance granted 16 casino

operating licences, including 4 licences issued under a non-tender procedure. The remaining

12 licences were awarded as a result of tendering procedures launched in 2016.

Betting

In 2017, 33 applications for a permit for arranging betting were filed (including 15 applications

for arranging betting via the Internet).

As at 1 January 2017, 26 permits for arranging betting were effective, which covered a total

of 2355 bet making points. As at 31 December 2017, 28 permits for arranging betting were

effective, which covered a total of 2510 bet making points.

In relation to the existing stationary bet making points, the rise in their number compared to

2016 was affected by granting a permit to a new operator and new permits to operators already

pursuing the activity.

As at 1 January 2017 7 permits for arranging betting via the Internet were effective. In 2017,

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the minister competent for public finance did not grant any permits for arranging betting via

the Internet.

As at 1 January 2017, 8 operators held permits for arranging betting. As at 31 December 2017

the said permits were held by 9 entities.

Poker tournaments

Until 1 April 2017, poker tournaments could have been arranged in casinos and the minister

competent for public finance, as the licensing authority, was also competent to issue permits

for their arrangement. Entities operating casinos pursuant to the licence granted were eligible

to apply for a permit. In 2017, 4 permits for arranging a poker tournament were issued to two

entities holding a casino operating licence.

In accordance with the amended Gambling Law, since 1 April 2017, the minister competent

for public finance has ceased to grant permits for arranging poker tournaments. A game

of poker in the form of a tournament can be organised on the basis of a notification of such a

tournament submitted to the director of the revenue administration regional office competent

for the venue of the tournament to be arranged, subject to fulfilling the terms and conditions

defined in the Gambling Law.

3.2. Permits issued by directors of revenue administration regional offices and

notifications submitted to heads of customs and tax control offices

Pursuant to the Gambling Law, the arrangement of the following games required a permit of

the competent director of the revenue administration regional office:

1) promotion lotteries;

2) audiotele lotteries;

3) raffle lotteries;

4) raffle bingo.

In 2017, directors of revenue administration regional offices (from 1 January 2017 to

28 February 2017 - directors of customs chambers):

1) issued in total:

a) 355 permits for arranging promotion lotteries to 132 operators;

b) 101 permits for arranging audiotele lotteries to 18 operators;

c) 2 permits for arranging a raffle lottery to 2 operators;

2) have not issued any permits for arranging raffle bingo.

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Comparing the number of permits issued in 2016 and 2017, the following developments were

noted:

1) in the scope of promotion lotteries – a decline in the number of permits granted by 21;

2) in the scope of audiotele lotteries – a rise in the number of permits granted by 5;

3) in the scope of raffle lotteries – a rise by 1 permit;

4) in the scope of raffle bingo – no permits were issued, as in 2016.

In 2017, heads of customs and tax control offices (from 1 January 2017 to 28 February 2017,

heads of customs offices) received 1286 raffle lottery arrangement notifications and 0 raffle

bingo arrangement notifications.

Pursuant to Article 7(1a) of the Gambling Law, the organisation of raffle lotteries or raffle

bingo – where the prize pool did not exceed the base amount (PLN 4,244.58 in 2017) – was

possible after a prior notification.

Pursuant to Article 7(1b) of the Gambling Law, in force since 19 December 2014, public

benefit organisations were eligible to arrange raffle lotteries and raffle bingo, where the prize

pool exceeded the base amount but was not higher than fifteen times the base amount, subject

to a prior notification.

Pursuant to Article 6a(1)(2) of the Gambling Law, a poker tournament can be organised outside

a casino subject to notifying the director of the revenue administration regional office competent

for the venue of the tournament of such a tournament and after fulfilling the terms

and conditions defined in the provisions of the Gambling Law.

3.3. Key indicators characterising the gambling market

The presented data were compiled on the basis of the information concerning the operation

of entities arranging and pursuing the activity in the scope of gambling games , i.e. data from

IGH forms (Gambling Operator Information forms)1, data from the KRAG (Electronic Register

of Gaming Machines) system, and the data supplied by Totalizator Sportowy Sp. z o.o.

1 Information on the functioning of entities - Regulation of the Minister of Development and Finance of 28 June

2017 concerning the submission of information on the functioning of entities arranging and pursuing activity in

the scope of gambling games (Journal of Laws item 1304);

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Number of existing entities, game centres and bet making points and the number of arranged

number games, cash lotteries, audiotele and promotion lotteries in the years 2016 - 2017

Item

Number of entities

Number of arranged number games,

cash lotteries, audiotele and

promotion lotteries, and the number

of game centres and bet making points

2016

2017

Change

2017/2016 (%)

2016

2017

Change

2017/2016 (%)

Number games (monopoly) 1 1 0% 8 7 -12.5

Cash lotteries (monopoly) 1 1 0% 79 85 7.6

Casinos 7 8 14% 53 49 -7.5

Games arcades 5 0 -100% 6 0 -100

Betting 8 9 12.5%

1 948 2 510 29 stationary points 8 8 0%

via Internet 7 7 0%

Audiotele lotteries 16 18 12.5% 43 101 135

Promotion lotteries 224 132 -41% 459 355 -22.7

The data presented in this table refer to all entities operating in the particular reporting period, even if their activity started

during the reporting period or was terminated before the lapse of the reporting period, i.e. before the end of the year.

According to the above data compilation, the number of entities arranging audiotele lotteries

and the number of arranged lotteries increased in 2017 compared to 2016 by 2 and 58,

respectively. In relation to promotion lotteries, both the number of entities arranging such

lotteries and the number of promotion lotteries themselves fell by 92 and 104, respectively.

In relation to 2016, the number of entities operating casinos and the number of entities

arranging betting increased by 1, on the other hand, the number of entities arranging betting

increased by one with a simultaneous growth in the number of bet making points by 562.

Pursuant to Article 5 of the Gambling Law, pursuing the activity in the scope number games

and cash lotteries is subject to state monopoly. The state monopoly is exercised by Totalizator

Sportowy Sp. z o.o. The number of arranged cash lotteries rose by 6 compared to 2016, whereas

the quantity of number games fell by 1.

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3.3.1. Number of gaming devices operated in casinos and games arcades

The table below presents the number of gaming devices operated in casinos and games

arcades in the years 2016 - 2017.

Device types

Number of gaming devices (average per period)

In casinos In games arcades

2016 2017 2016 2017

Cylindrical game tables 156 141 X X

Card game tables 228 218

Dice game tables 1 1

Gaming machines 2 920 2 673 92 0

3.3.2. Economic and financial results of entities pursuing activity in the scope of gambling

games

The economic and financial results of entities pursuing activity in the scope of gambling

games in the years 2016 - 2017 are presented in the table below.

Specification 2016 2017

Change

2017/2016 (%) (in PLN ‘000)

Revenue on games* 10,575,904 12,901,922 22

Prizes won by players* 7,320,075 9,175,050 25

Gambling tax due** 1,406,925 1,640,203 17

Surcharges arising from Article 80 of the

Gambling Law **

986,050 959,039 -2,7

*Source: IGH forms

**Source: budgetary data

Note: the amount of the revenue on games for 2016 has been adjusted due to the adjustment of the revenue on

audiotele lotteries presented in the table in section 3.3.3.

The above specification shows that in 2017 the revenue on gambling games rose by

PLN 2,326,018 thousand, i.e. by 22% compared to 2016 and the amount of gambling tax due

also increased by PLN 233,278 thousand, i.e. by 17%.

In 2017, the prizes won by gamblers amounted to PLN 9,175,050 thousand and in relation to

2016, they rose by PLN 1,854,975 thousand, i.e. by 25 %. In 2016, the amount of prizes reached

PLN 7,320,075 thousand.

On the other hand, in 2017 the amount of surcharges decreased by PLN 27,011 thousand, i.e.

by 2.7 % compared to 2016.

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3.3.3. Revenue on gambling games recognised by entities pursuing activity in this scope

and its structure by game types in the years 2016 - 2017

The table below presents the revenue on gambling games recognised by entities pursuing

activity in this scope in the years 2016 – 2017 and its structure by game types.

Specification

2016

2017

Change in revenue

2017/2016 (%)

Revenue

(in PLN

thousand)

Structure

(%) Revenue

(in PLN

thousand)

Structure

(%) Structure

(%)

Monopoly 4,576,334 43.3 4,641,623 36 1.4

Number games 3,604,431 34.1 3,475,827 27 -3.6

Cash lotteries 971,903 9.2 1,165,796 9 20

Casinos 4,265,460 40.3 4,823,043 37.4 13

Games arcades 38,509 0.4 - - -

Betting 1,660,169 15.7 3,407,276 26.4 105

Audiotele lotteries* 35,432 0.3 29,980 0.2 -15

Total 10,575,904 100% 12,901,922 100% 22%

*The information on the amount of revenue on audiotele lotteries was based on data sources (IGH forms) which

turned out incomplete, accordingly, resulting it was necessary to adjust the data for 2016. The adjusted amount

was calculated on the basis of tax data.

The specification presented above indicates that2017, compared to 2016, saw an increase in

the revenue generated on betting (an increase by PLN 1,747,107 thousand, i.e. by 105 %) and in

casinos (an increase by PLN 557,583 thousand, i.e. by 13 %).

In the case of gambling games subject to the state monopoly, an increase in the revenue– by

PLN 65,289 thousand, i.e. by 1.4 % was recorded (cash lotteries – an increase by PLN 193,893

thousand, i.e. by 20 %), whereas in the case of number games – a decline by PLN 128,604

thousand, i.e. 3.6 % was noted.

In the case of audiotele lotteries, a decrease in the revenue by PLN 5,452 thousand, i.e. by 15 %

was recorded.

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4. RECEIPTS FOR THE STATE BUDGET

4.1. Gambling tax revenue

In 2017, the receipts for the state budget on account of gambling tax were forecast at a level of

PLN 1,709,000 thousand. They were accomplished in the amount of PLN 1,640,203 thousand,

which means that in relation to the forecast they were lower by PLN 68,797 thousand, i.e. 4 %.

Compared to 2016, these receipts were higher by PLN 233,278 thousand, i.e. by 16.6 %.

The scope and level of detail of the data concerning the state budget revenue on account of

gambling tax is stems from the Regulation of the Minister of Finance of 2 March 2010

concerning the detailed classification of income and expenses, revenues and expenditure and

funds originating from foreign sources (Journal of Laws of 2014, item 1053, as amended).

In accordance with the aforementioned regulation, revenue from gambling tax is disclosed in

the budgetary classification in Section 756, Item 75614 –receipts from games.

Consequently, the revenue on account of gambling tax gained from individual games

and betting is not presented in the state budget as a separate position.

Nevertheless, it is possible to determine the level of declared individual tax amounts arising

from the aforementioned title on the basis of forms filed by taxpayers.

4.1.1. Gambling tax for the years 2016-2017

The table below presents amounts of tax declared by taxpayers for individual types of gambling

games in the years 2016 – 2017.

Specification

Gambling tax (in PLN thousand)

(due – declared by taxpayers)

2016 2017 Change 2017/2016

(%)

Monopoly 866,665 870,032 0.4

Number games 720,886 695,165 -3.6

Cash lotteries 145,779 174,867 20

Casinos 339,096 372,134 10

Games arcades 2,724 - -

Betting 196,596 407,367 107

stationary points 108,489 128,142 18

via the Internet 88,107 279,225 217

Audiotele lotteries 8,858 7,495 -15

Raffle lotteries 12 32 166

Total 1,413,951 1,657,060 17

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The estimated amounts due (declared by taxpayers) on account of gambling tax in 2017

reached PLN 1,657,060 thousand and exceeded the amount due for 2016 by PLN 243,109

thousand, i.e. by 17 %.

Compared to 2016, the growing dynamics of amounts declared in the following game segments

had the greatest impact on the level of gambling tax gained in 2017:

- betting (in stationary points and via the Internet) – an increase by PLN 210,771

thousand, i.e. by 107 %,

- games in casinos – an increase by PLN 33,038 thousand, i.e. by 10 %,

- cash lotteries – an increase by PLN 29,088 thousand, i.e. by 20 %,

- raffle lotteries – an increase by PLN 20thousand, by 166 %.

In 2017, a decline in the amount of declared gambling tax occurred in the case of audiotele

lotteries (a decrease by PLN 1,363 thousand, i.e. by 15 %) and number games (a decline by

PLN 25,721 thousand, i.e. by 3.6 %), whereas in the case of games on gaming machines

arranged in games arcades, due to the expiry of the last games arcade permit on 7 June 2016,

no gambling tax receipts were recorded.

4.1.2. Structure of gambling tax for the years 2016 – 2017

The table below presents the structure of tax for individual types of gambling games in the

years 2016 - 2017.

Specification

Structure of e gambling tax (%)

2016 2017

Monopoly 61.3% 52.5%

Number games 51% 42%

Cash lotteries 10.3% 10,5%

Casinos 24% 22.4%

Games arcades 0.2% 0

Betting 13.9% 24.6%

stationary points 7.7% 7.7%

via the Internet 6.2% 16.8%

Audiotele lotteries 0.6 % 0.5%

Raffle lotteries 0.0008% 0.002%

Total 100% 100%

The analysis of the structure of gambling tax declared in 2017 indicates that, compared to 2016,

its share in the total amounts of gambling tax declared from the following segments of the

gambling market increased:

1) betting - by 10.7 percentage points;

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2) raffle lotteries - by 0.001 percentage points.

At the same time, in other segments, a decline of share in the total amounts of declared

gambling tax decreased. The greatest decline was recorded in number games – by 9 percentage

points, casinos - by 1.6 percentage points, cash lotteries - by 0.2 percentage points, audiotele

lotteries - by 0.1 percentage point.

4.2. Tax arrears

As at 31 December 2017, tax offices recorded tax arrears amounting to PLN 101,579 thousand,

which means that their increase by PLN 15,681 thousand, i.e. by 18 % compared to the status

as at 31 December 2016.

Gambling tax arrears

(in PLN ‘000)

Specification As at 31.12.2016 As at 31.12.2017

Amount of arrears 85,898 101,579*

* the increase of the balance of gambling tax arears was affected by the arrears of one entity (in the amount of PLN 19,976

thousand) who, as at the date of preparing this report, had already settled the liabilities.

Pursuant to Article 63 of the Gambling Law, an entity arranging games was obliged to provide

financial security in the following amounts in order to secure tax liabilities on account

of gambling tax:

1. PLN 1,200,000 – in the case of casino operation;

2. PLN 600,000 - in the case of cash bingo hall operation;

3. PLN 40,000 - in the case of bet making points;

4. PLN 480,000 - in the case of arranging betting via the Internet.

In the case of failure to pay the assessed or declared amount of gambling tax on time, the

liability was satisfied out of the security provided. In 2017, the number of pending instruments

permitting enforcement on account of gambling tax amounted to 351, 264 were settled .

The amount covered by instruments permitting enforcement reached PLN 2,532 thousand,

including PLN 355 thousand of enforced tax arrears.

4.3. Receipts from fees in 2017

In accordance with the Gambling Law effective in 2017, entities arranging gambling games

paid the fee:

to the bank account of the Ministry of Finance:

1) fee for the granting licences and permits, change of licences or permits – pursuant to

Article 68(1)(1) and (4) of the Gambling Law. The amount of PLN 19,224.9 thousand was

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transferred to the MF account;

2) examination fee – Article 68(1) (2) of the Gambling Law repealed by the Act of 15

December 2016 amending the Gambling Law and certain other Acts which entered into force

as of 1 April 2017. In 2017, seven exams were held; accordingly, the MF account was credited

with the amount of PLN 249.2 thousand;

3) fee for issuing a professional certificate – Article 68(1) (3) of the Gambling Law repealed

by the Act of 15 December 2016 amending the Gambling Law and certain other Acts which

entered into force as of 1 April 2017. In 2017, 136 professional certificates were issued,

accordingly, the MF account was credited with the amount of PLN 76.2 thousand.

4) fee for examining the request for resolving the nature of games referred to in Article 2(6)

– accordingly, the MF account was credited with the amount of PLN 68.2 thousand;

to the bank account of the Nowy Targ Tax Office:

1) for issuing permits for promotion lotteries, raffle lotteries, audiotele lotteries, bingo

games– PLN 32,119.4 thousand;

2) for registration of a gaming machine – PLN 761.8 thousand;

3) for a lottery drawing machine – PLN 46.7 thousand;

4) for registration of a gaming device – PLN 44.6 thousand.

In total, in 2017, on account of the aforementioned fees the bank accounts of the Ministry of

Finance were credited with the amount of PLN 19,618.5 thousand whereas the bank account of

the Nowy Targ Tax Office was credited with the amount of PLN 32,972.5 thousand. The total

receipts on account of the aforementioned fees determined under the Gambling Law

amounted to PLN 52,591 thousand.

4.4. Surcharges

Pursuant to Article 80(1) of the Gambling Law, the following surcharges were established for

games subject to the state monopoly:

1) 25% of the stake, price of the coupon or another game ticket – in number games;

2) 10% of the stake, price of the coupon or another game ticket – in cash lotteries and

telebingo.

In accordance with the Gambling Law, the surcharges are transferred in the following way:

1) 75% - to the Physical Culture Development Fund operated by the minister competent

for physical culture;

2) 20% to the Fund for the Promotion of Culture operated by the minister competent for

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culture and national heritage;

3) 1% to the Fund for Resolving Gambling Problems operated by the minister competent

for health matters;

4) 4 % to the Fund for the Support of Civil Society Development, operated by the

Chairman of the Committee for Public Benefit Affairs.

Surcharge amounts transferred to individual funds in 2017

Specification

Amount (in PLN thousand)

2016 2017 Difference

2017 – 2016

Physical Culture Development Fund 759,696 723,938 -35,758

Fund for the Promotion of Culture 197,324 191,694 -5,630

Fund for Resolving Gambling Problems 29,030 15,239 -13,791

Fund for the Support of Civil Society Development - 28,168 +28,168

TOTAL 986,050 959,039 -27,011

Source: budgetary data

In 2017, the amount of surcharges decreased by PLN 27,011 thousand, i.e. by 2.7 % compared

to 2016.

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5. SUPERVISION AND CONTROL OF ACTIVITY DETERMINED UNDER THE

GAMBLING LAW

5.1 Bodies authorised to exercise control and forms of control

The Act of 16 November 2016 on the National Revenue Administration (Journal of Laws

of 2018 item 508, as amended)2 provided basis for the control of the gambling market in 2017.

The tasks of the National Revenue Administration included: performing customs and tax

inspections in the area of gambling games in the scope of compliance of entities pursuing such

activity with to the provisions of the Gambling Law, compatibility of this activity with

the notification, granted licence or permit and with the approved game regulations, control

of compliance with the obligations in the scope of gambling tax and surcharges, control

of gaming machine holding as well as the production and trade in gaming machines. Moreover,

the tasks of the National Revenue Administration included the identification, detection,

counteracting and combating tax crime and tax offence against the organisation of gambling

games and the prosecution of perpetrators.

The bodies authorised to perform the aforementioned tasks in 2017 were the heads of customs

and tax control offices3. Control powers with regard to the accuracy of declared taxable amount

and the correctness of gambling tax assessment and payment were also exercised by revenue

control authorities4.

Inspections in the area of gambling games comprise:

1) compliance with the provisions regulating the arrangement and conducting of gambling

games referred to in the Gambling Law and compatibility of such activity with the notification,

granted licence or permit and the approved regulations;

2) accuracy and timeliness of gambling tax payments; these inspections were performed

under the rules defined in Chapter 3 of the Act of 27 August 2009 on the Customs Service

(Journal of Laws of 2016, item 1799, as amended), by heads of customs offices5;

3) fulfilment of the entities’ obligations in the scope of gambling tax and surcharges.

Furthermore, in connection with the entry into force on 1 April 2017 of the Act of 15 December

2016 amending the Gambling Law and certain other Acts which introduced changes

in the scope of the currently effective model of the gambling market, the following areas are

2 In the period from 1 January to 28 February 2017 the tasks were performed by Customs Service bodies pursuant to

the Act of 27 August 2009 on Customs Service . 3 In the period from 1 January to 28 February 2017 - heads of customs offices and directors of customs chambers 4 Refers to the period from 1 January to 28 February 2017 5 Since 1 March 2017, the inspections have been carried out pursuant to the Act of 16 November 2016 on the

National Revenue Administration by heads of customs and tax control offices

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also subject to customs and tax control:

1) compliance with the provisions in the scope of holding gaming machines;

2) production and trade in gaming machines.

5.2. Conducted inspections in the area of the legal gambling market and their outcome

5.2.1. Inspections of arrangement of gambling games in 2017

In 2017, the National Revenue Administration conducted the total of 552 inspections of

arrangement of gambling games, i.e. 245 more inspections than in 2016. As a result

of 69 inspections of arrangement of gambling games performed by bodies of the National

Revenue Administration various types of irregularities were disclosed, which consequently

indicates that the effectiveness of these inspections reached 12.5%. The increased number

of inspections was associated with the emerging signals of occurring irregularities, among

others, in bet making points, including the intensification of control measures in sectors

of potential non-compliance risk.

5.2.2. Number of performed inspections of arranging games and irregularities found in

entities holding a license/ permit for arranging gambling games and in entities notifying

such games

The table below presents the number of inspections of arranging individual types of games

in areas of the legal gambling market carried out by bodies of the National Revenue

Administration.

Game type Number of inspections performed

Number of inspections

during which

irregularities were

found

2016 2017 2017

Games on gaming machines in games

arcades

3 0* 0

Games in casinos 76 119 6

Betting 74 297 30

Number games (lottery offices) 18 26 5

Lotteries (raffle, promotion, audiotele) 118 97 27

Cash lotteries 18 13 1

Total 307 552 69

* In 2017, no games arcades operated

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Casinos

In 2017, 119 inspections were performed in casinos.

During 6 inspections of arranging gambling games irregularities were disclosed which

consisted, among others, in:

- failure to record a visitor’s entry in the casino in the register;

- incorrect assessment of the taxable amount and tax calculation on a game of poker

played in the form of a tournament;

- lack of validation of the records of certificates by the head of the customs and tax control

office.

Betting – bet making points

In 2017, 2,510 bet making points operated. During 297 inspections performed by the National

Revenue Administration bodies, irregularities were disclosed in 30 cases. The irregularities

were, among others related to:

- failure to publish the rates and the results of betting at a bet making point;

- lack of validated records of prizes paid out (issued) with a value of at least PLN 2,280;

- failure to display a warning on the ban on participation of minors in the game;

- lack of consent of the national organiser of sports competitions to use the results of

events;

- untimely issue of certificates of prize;

- violating the conditions of the permit by arranging betting in the manner incompatible

with the regulations;

- arranging betting at a point located in a venue which does not fulfil the requirements

of the Gambling Law;

- prohibited advertising of betting.

Promotion and audiotele lotteries

In 2017, 27 inspections of arranging promotion lotteries and audiotele lotteries were conducted.

In 14 cases, various types of irregularities were found, related in particular to:

- arranging a lottery without a permit;

- failure to send a notification of the commencement of the lottery;

- failure to properly secure the lottery drawing machine against tampering (incorrect seal

placement).

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Number games

In 2017,26 inspections of arranging number games were conducted. During 5 inspections

an irregularity was found consisting in the lack of warning concerning the ban on minors’

participation in the game.

Raffle lotteries

In 2017, 70 inspections of raffle lotteries were performed. Results of 13 inspections indicated

various types of irregularities. The irregularities were, among others related to:

- lack of validated records of prize certificates;

- arranging a raffle lottery without a permit;

- failure to notify the destruction of coupons;

- failure to settle the lottery within the determined time limit;

- the value of prize in gambling games (the value of the prize was lower than the price

of the coupon, the total value of the prizes won was lower than 30% of the total price

of the coupons for sale);

- notifying a lottery with the infringement of the statutory deadline.

Cash lotteries

In 2017, 13 inspections of lottery offices offering cash lotteries were performed. During one

inspection, an irregularity consisting in the lack of access to the lottery regulations was found.

5.2.3. Tax inspections performed by the National Revenue Administration in the area of

gambling games

Tax inspections

In 2017, heads of customs and tax control offices conducted 8 inspections in the scope

of gambling tax. As a result of all tax inspections, reduction of receipts for the state budget

on account of gambling tax by PLN 774,224 was disclosed. The irregularities included

incorrect assessment of the taxable amount and calculation of the tax due on a poker game

in the form of a poker tournament and (in the case of 2 inspections), the failure of an entity

arranging a poker tournament to file gambling tax returns.

Inspections of the accuracy and timeliness of gambling tax payments

In 2017, heads of customs and tax control offices conducted 14 inspections of the accuracy and

timeliness of gambling tax payments referred to in Article 30(3)(1) of the Act of 27 August

2009 on the Customs Service6. One inspection revealed the irregularity related to

6 Since 1 March 2017, inspections have been performed pursuant to the Act of 16 November 2016 on the National

Revenue Administration by heads of customs and tax control offices

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underestimation of the gambling tax taxable amount. This irregularity did not affect

the reduction in the amount of gambling tax due to the loss incurred by the casino in the period

when the irregularity occurred.

5.3. Inspections in the area of the illegal gambling market, i.e. in relation to entities

arranging and conducting gambling games without a licence, a permit or a notification

In 2017, the National Revenue Administration (KAS) continued its activities aimed at

combating tax offence consisting in the illegal arrangement of games.

As a result of performed control measures, the KAS bodies detected the following

irregularities:

- arranging 10 promotion lotteries without a permit;

- arranging 2 audiotele lotteries without a permit;

- arranging 2 raffle lotteries without a permit.

In 2017, the National Revenue Administration carried out intensive control of the market with

regard to arranging games on gaming machines without a required permit, holding of gaming

machines as well as production and trade in gaming machines.

In 2017, 27,635 gaming machines were seized. This number results from maintaining the level

of control effectiveness based on risk analysis and counteracting illegal activity undertaken in

locations where gaming machines registered as low-value-prize machines formerly operated .

In the scope of illegal operations, intensified measures were continued in the area of illegal

arranging of games on gaming machines, i.e. arranging illegal games using electronic media,

skill with prizes (SWP) and arranging games without a permit on traditional (classic) gaming

machines. Additionally, in 2017, activities were also carried out in the scope of unlawful

possession of gaming machines. These actions, conducted also in collaboration with the Police,

were targeted at disclosing the arrangement of illegal games on gaming machines or illegal

holding of gaming machines.

Irrespective of the foregoing, as a result of the activities performed in 2017, over 45,000

interventions were undertaken in order to verify the locations identified as having arranged

illegal games on gaming machines in the past, or where a likelihood of such activities existed.

The number of devices seized by the National Revenue Administration was slightly higher than

in 2016. This is associated with additional seizure of gaming machines on account of their

unauthorised holding in 2017. In 2017, bodies of the National Revenue Administration seized

14,738 gaming machines which were used to arrange games and 12,897 gaming machines

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on account of their unauthorised holding (including 11,721 gaming machines stored

in warehouses). In connection with the intensified activities of the National Revenue

Administration bodies, the number of gaming machines used for illegal games on gaming

machines seized in 2017 was lower by 43.8 % compared to 2016.

The table below presents the number of devices seized for the purpose of proceedings in tax

penal cases :.

Device type 2010 2011 2012 2013 2014 2015 2016 2017

Low-value--prize machines

operated without a permit

1,030

70

60

169

13,864

29,855

x

x

Traditional gaming

machines

1,074 631 459 2,554

24,699

24,503

SWP machines 87 1,856 2,474 1,574

Internet terminals 102 672 288 1,649 393 393 1,532 3,132

TOTAL 2,293 3,229 3,281 5,946 14,257 30,248 26,231 27,635

Internet terminals

The first area of illegal arranging of games on gaming machines was the arrangement of illegal

games using electronic media. In 2017, during inspections of locations where the

aforementioned games were illegally arranged, bodies of the National Revenue Administration

seized 3,132 of such machines.

Such devices, via the Internet, enabled their users to play gambling games analogically

to the traditional gaming machines within the meaning of the Gambling Law. In the course

of conducting illegal games using Internet terminals, the fee for the game was paid at the venue

where the Internet terminal was located, through a banknote or coin reader installed

in the machine itself or with the help of staff who, using another computer connected to

the Internet, would pay the fee for the game, corresponding to the amount received from the

player in cash. The operators also paid out prizes for points won on the machine. Such machines

were usually deployed in premises to be treated as Internet cafes as well as in places where

liquidated game points operated in the past.

In 2017, the phenomenon of introducing “Knowledge quiz” and “CSANI” devices to operation

was still popular.

In this respect, on 29 November 2016, the Minister of Development and Finance issued the first

decision concerning the nature of games arranged on such machines, recognising that they

should be treated as games on gaming machines. Additionally, on 14 September 2016,

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the Ministry of Finance published a notice on its website concerning the appearance of CSANI

terminals (internet kiosks) and so-called “Quiz machines” on the market, whereas on 26 May

2017, the Ministry published a notice reminding the public of the definition of games

on gaming machines within the meaning of the Gambling Law and the meaning of an ‘element

of chance’ with regard to gambling games.

On 28 October 2014, the Minister of Finance issued a decision, in which it ruled that games

organised on CSANI Money Transfer Kiosk devices were regarded as games on gaming

machines within the meaning of the Gambling Law.

This position was shared by the Supreme Administrative Court in its judgment of 8 February

2017, case ref. II GSK 5293/16, which ruled that the players using the CSANI platform

on Money Transfer Kiosk devices did not enter into a purchase/ sale transactions of financial

instruments, currency options, but they were playing gambling games offered by the device.

Additionally, on 12 February 2018, the Internet domains csani.com and www.csani.com using

Internet addresses http://www.csani.com and http://csani.com to arrange games via the Internet

were entered in the Register of domains used to offer gambling games incompatible with

the Gambling Law, referred to in Article 15f (1) of the Gambling Law..

Skill with Prize Machines (SWP)

Another area of the illegal arrangement of games on gaming machines was the arranging of

illegal games using skill with prize machines. They are gaming machines where prizes are paid

outside the machine, e.g. by the staff of the premises or a bartender. The operators arranging

and conducting gambling games on skill with prize machines for the purpose of fraudulent

disguise of their illegal operation, displayed notices on the device informing that the machine

was a play device only and did not pay out prizes. Moreover, there were other elements

installed in the devices to fake their legality, such a time limiters and skill elements.

Traditional (classic) gaming machines

The third and most common area of illegal arranging of games on gaming machines was

the arranging such games using traditional (classic) gaming machines, where cash or in-kind

prizes were possible (the prize is paid out by the machine). In 2017, during inspections

of the locations where games on SWPs and traditional gaming machines were illegally

arranged, the National Revenue Administration seized 24,503 gaming machines. In most cases

they were machines previously used as low-value-prize gaming machines which, after small

alterations, returned to the market as gaming machines used for games arranged illegally.

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5.3.1. Activities of the National Revenue Administration in the scope of combating

arranging games on gaming machines without a permit

The greatest risk of irregularities was identified in the following areas:

- arranging games on gaming machines without using any electronic media (traditional

gaming machines);

- arranging gambling games using electronic media.

Due to the fact that the market of games on gaming machines was remodelled to permit

arranging of games on gaming machines in casinos and games arcades operated by an entity

exercising the state monopoly in this scope only, a substantial number of gaming machines

which used to arrange games on low-value-prize gaming machines are being re-introduced into

the market as gaming machines used for illegally arranged games after minor alterations.

The National Revenue Administration authorities will continue to eliminate that hazard,

including by further exercising of their intensified control measures, especially by inspecting

the locations where illegal arrangement of gambling games had been already disclosed

in the past. The National Revenue Administration, within its activities, obtained information

on location of illegal points of games on gaming machines, in particular from the Municipal

Guards, the Police, local authorities, schools, from the Customs Service hotline7,

the powiadom.clo e-mail box (currently at: [email protected]), and the National

Hotline of the National Revenue Administration 800 060 000 – line open 24h a day, the same

number for the entire territory of Poland). It also continued the collaboration with the Chief

Commander of the Police in the scope of cooperation with regional / capital city, district,

municipal and local police departments in the identification of locations where illegal gambling

operations were taking place with the violation of the provisions of the Gambling Law,

including by conducting joint inspections.

Additionally, in 2017, combating the arrangement of games on gaming machines without

a permit/ licence was implemented through:

- focusing the inspections on locations which are socially vulnerable and exposed,

especially in city centres, bazaars, passages and commercial centres, surroundings

of trunk roads, in the vicinity of schools, medical facilities, places of worship;

- criminal analysis aimed at linking facts in order to detect the perpetrators or identify new

directions which have to be explored in order to disclose irregularities;

7 From 1 March 2017, the National Revenue Administration

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- cooperating with local authorities; if illegal games on gaming machines are found to be

arranged in locations offering alcohol, the licensing authority will receive information on

organising gambling games on the premises without a permit required by law;

- conclusion of an agreement between the Head of the National Revenue Administration

and the Chief Building Supervision Inspector on cooperation in identifying locations

where operations were carried out with violation of the provisions of the Building Law

and the Gambling Law;

- elaboration and submission of information on new legal regulations in the area

of gambling games in connection with the entry into force of the Act amending

the Gambling Law and certain other acts:

a) to the Minister of the Interior and Administration, with a request to disseminate

it in subordinated local administration units, including paying special attention

to issues connected with letting premises to operators under agreements

concluded by those units;

b) to the Presidents of the Polish Chamber of Liquid Fuels and the President of the

Polish Industry Organisation, with a request to disseminate it among their

members operating in the fuel sector present mainly in the Polish retail market

of liquid fuels and distributing liquid fuels or lubricating oils, including

indicating that the dissemination of the information might contribute to avoid

potential criminal or administrative liability.

5.4. Activities of bodies of the National Revenue Administration in the scope of violation

of the provisions of the Gambling Law on the Internet

The technological development enabling comprehensive use of the Internet, available to

anyone and practically at any location, also triggers changes in the structure of gambling

games. These changes consist in relocating and undertaking activities in the scope of arranging

gambling games to the Internet. The Internet as well as new communication methods are

frequently used as a tool to conduct illegal activities through the range of options they offer,

i.e. arrangement of gambling games via the Internet, their advertising and promotion and

information on sponsoring contrary to the provisions of the Gambling Law as well as

participation in illegal games.

5.4.1. Arranging illegal gambling games on the Internet

Due to the entry into force, on 1 April 2017, of the Act of 15 December 2016 amending

the Gambling Law and certain other acts which introduced changes in the scope of the current

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model of the gambling market intended to achieve the objective of highest level of player

protection and limiting the phenomenon of the “shadow economy”, the activities of the

National Revenue Administration bodies focused on illegal gambling games arranged via the

Internet.

The main area of activity was the monitoring of the Internet and identification of websites

in terms of infringement of the provisions of the Gambling Law, including for the purpose

of entering their names in the Register of domains used to arrange gambling games against the

Gambling Law.

The premises for entering a domain name in the Register have been listed in Article 15f (4)

of the Gambling Law. A domain name is entered in the Register if the domain is used for

arranging gambling games without a license, a permit or without a notification required under

the Law, especially if the websites which used the names of such domains are:

- available in Polish,

- advertised on the territory of the Republic of Poland.

Entry in the Register, amendment to the entry or its striking-off is performed on an ex officio

basis following the approval by the minister competent for public finance or an authorised

secretary of state or undersecretary of state, in the office of the minister competent for public

finance.

In 2017, as a result of undertaken measures 1,277 domains were entered in the Register.

5.4.2 Advertising and promoting gambling games on the Internet

The National Revenue Administration implemented measures in the scope of counteracting

prohibited advertising and promotion of games and informing of sponsoring on the Internet

taking into account the provisions of Directive 2000/31/EC of the European Parliament and

of the Council of 8 June 2000 on certain legal aspects of information society services,

in particular electronic commerce, in the Internal Market (OJ L 178 from 17.07.2000, p. 1)

and Directive 2006/123/EC of the European Parliament and of the Council of 12 December

2006 on services in the internal market (OJ L 376 from 27.12.2006, p. 36). Within the legal

framework effective in 2017, the measures concerning the area under discussion were

implemented pursuant to the Act of 18 July 2002 on the Provision of Electronic Services

(Journal of Laws of 2017, item 1219, as amended), which implemented (in principle)

the provisions of the Directive on electronic commerce, and pursuant to the Act of

10 September 1999– Fiscal Penal Code (Journal of Laws of 2017, item 2226, as amended).

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In 2017, as a result of a systematic review of the Internet by the National Revenue

Administration bodies in the scope of posting illegal advertising and promotion of gambling

games, among others on servers managed by domestic providers of hosting services (entities

offering space on their servers to consumers for the purpose of saving their data), 66 domains

were identified, where hosting services of the particular website were provided by Polish

entities. 68 URLs were identified in 66 domains, with content which violated Article 29(1)

and (2) of the Gambling Law. Providers of hosting services removed/ blocked access

to forbidden content located in 64 domains.

In the current practice, which is evident from the above data on the proceedings conducted and

the number of blocked Internet domains, results can be noted indicating the effectiveness

of the National Revenue Administration in this respect.

5.4.3. Activities in the scope of cooperation of the National Revenue Administration bodies

with the aim of counteracting violation of provisions in the area gambling games on the

Internet

The following measures were undertaken in order to counteract crime in the area of gambling

games arranged via the Internet:

- cooperation was started with several dozens of hosting service providers which improved

the communication and the effectiveness of implemented tasks;

- drafting and providing the Chairman of the Polish Financial Supervision Authority with

information in the scope of new legal regulations in the area of gambling games

in connection with the entry into force of the Act amending the Gambling Law

and certain other acts, especially concerning the blocking of illegal operators’ websites

and blocking payments to entities arranging illegal gambling games via the Internet, with

a request to disseminate this information among providers of payment services in the face

of administrative sanctions against the entities failing to observe the prohibition

on the provision of payment services;

- working out a method for cooperation between the Polish Financial Supervision

Authority and the National Revenue Administration in the scope of enforcement

of the prohibition to act as an intermediary in payments for participation in gambling

games arranged via the Internet on the territory of Poland to entities illegally arranging

gambling games via the Internet;

- establishing collaboration with the Ministry of Health with regard to launching

an information and education campaign in the area of arranging illegal gambling games

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via the Internet under the programme of Counteracting Behavioural Addiction,

operational objective no. 2: Prophylaxis and resolving problems related to using

psychoactive substances, behavioural addictions and other risky behaviour of the

National Health Programme for the years 2016 – 2020, and launching measures aimed

at conducting scientific research on the participation of the society in gambling games

via the Internet, the results of which would make it possible to define a profile of a typical

on-line gambler in order to define effective methods for resolving gambling addiction

problems and develop adequate preventive measures appropriate for that group

of persons.

Measures undertaken against players participating in illegal gambling games via the

Internet

In 2017, 13 proceedings were initiated against persons who participated in illegal gambling

games on the Internet, in 12 cases charges were presented to suspects. The courts issued

criminal conviction in 7 cases, sentencing the defendants to fines in the total amount of

PLN 9,280,00. Moreover, in 4 cases the courts issued judgments as a result of voluntary

subjection to penalty, with total fines amounting to PLN 2,440.00.

5.5. Tax crime and tax offence against the organisation of gambling games

Tax crime and tax offence against the organisation of gambling games is described in Title 1

Section 2 Chapter 9 (detailed part) of the Act of 10 September 1999– Fiscal Penal Code. As of

1 March 2017, bodies authorised to conduct proceedings concerning these issues are the heads

of customs and tax control offices which form a part of the National Revenue Administration.

In the period from 1 January to 28 February 2017, the Customs Service was competent for

conducting proceedings in the aforementioned scope.

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The table below presents the number of proceedings concerning tax crime and tax offence

against the organisation of gambling games, conducted by the Customs Service in 2016

and by Customs and Tax Control offices in 2017

Tax crime and tax offence in the scope

of:

Preparatory

proceedings

Fine ticket

proceedings

2016 2017 2016 2017

Games on gaming machines and betting 8,747 9,709 11 8

Raffle lotteries, raffle bingo, promotion

lotteries and audiotele lotteries 85 45 0 2

Advertising and promoting gambling games

and information on sponsoring 95 159 9 3

Other violations of provisions regulating

the organisation of gambling games 62 52 6 2

Total 8,989 9,763 26 15

The total amount of fines imposed in closed

cases (in PLN) 1,667,089 24,641,423 22,500 11,552

In 2017, the courts imposed a fine in 2331 fiscal penal cases against perpetrators of tax crime

and tax offence for the total amount of PLN 24,641,423, which constitutes a rise in the total

amount of fines by 1,378 % compared to 2016. In cases concluded in ticket proceedings, a fine

was imposed in 15 fiscal penal cases for a total amount of PLN 11,552. In aggregate, the fines

were imposed on perpetrators in 2,346 fiscal penal cases for non-compliances in the area

of gambling games for the total amount of PLN 24,652,975, which constitutes an increase in

the amount of fines by 1,359 % compared to 2016.

In 2016, customs offices, as fiscal authorities competent to conduct preparatory proceedings,

undertook investigations not only against persons who arranged and conducted illegal

gambling activities and participated in illegal gambling games, but also against persons who

contributed and enabled the illegal procedure, e.g. by letting premises and rooms, providing

services, etc. Starting from 1 March 2017, the tasks in this area were taken over by heads

of Customs and Tax Control offices.

The number of fiscal penal proceedings in the area of games on gaming machines and betting

increased by 11 %. On the other hand, in the scope of raffle lotteries, raffle bingo games,

promotion lotteries and audiotele lotteries, the number of cases fell significantly – by 47 %,

which proves that the scale of irregularities in this area is markedly lower. The activities

undertaken by customs and tax control offices also included combating prohibited advertising

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and promotion of gambling games: the number of such cases increased by 64 in 2017,

i.e. by 67 % compared to 2016. The number of other types of cases involving tax crime and tax

offence conducted in 2017 fell by 10, i.e. by 16 % compared to 2016.

Achievement of these results in combating tax crime and tax offence against the organisation

of gambling games was possible, among others, as a result of the collaboration between

the National Public Prosecutor’s Office and the Ministry of Finance in eliminating so-called

“shadow economy” in the environment of gambling games. The activities of the National

Public Prosecutor’s Office in 2017 significantly affected developments in the practice

of prosecuting economic and financial and tax crime.

5.6. Application of administrative sanctions for the infringement of the provisions of the

Gambling Law

A financial penalty is a financial sanction for the failure to comply with the obligations

stipulated in the Gambling Law imposed pursuant to Article 89 of the Gambling Law.

A financial penalty can be imposed both on an organiser of gambling games without a licence

or a permit or a notification, without the required gaming machine or device registration,

on an organiser of gambling games on gaming machines outside a casino as well as on

a participant in a gambling game which is arranged without a licence or a permit.

As a result of conducted proceedings concerning the infringement of the provisions

of the Gambling Law and imposing fines as a consequence of inspections carried out by

the National Revenue Administration, the total amount of financial penalties imposed under

Article 89(1) of the Gambling Law (in the first instance decisions) amounted to PLN 237,429.9

thousand.